In today’s housing market, wheresupply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 5%+ over the next twelve months. One major challenge in such a market is the bank appraisal.
If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the selling price when performing the appraisal for the bank.
Every month, Quicken Loansmeasures the disparitybetween what a homeowner believes their house is worth as compared to an appraiser’s evaluation in theirHome Price Perception Index (HPPI).Here is a chart showing that difference for each of the last 12 months.
Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market this year, let’s get together to discuss this, and any other obstacle that may arise.
Author:Angela Cotten Phone: 817-470-0081 Dated: October 13th 2016 Views: 875 About Angela: Results, Integrity, Attitude & Honesty. If superior representation with a caring touch is what you ...
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